in order to transfer real estate withholding to beneficiaries of a trust, the trust needs to take certain steps, including: List the trustee as the withholding agent on Form 592, Resident and Nonresident Withholding Statement The beneficiatios are ilsted as the payees on Form 592, schedule of Payees, and the withheld amounts are allocated there Report the withholding on the California Schedule K.1 Make sure that Box A, Trust Distributions, is checked in Part I of Form 592